Refund of accumulated Cenvat Credit against Deemed Export

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This query is : Resolved

ADITYA (Querist)

10 May 2009 Dear Sir,

We are manufacturer and are selling material to 100% EOU against CT - 3, on which no excise duty is payable resulting accumulation of Cenvat Credit.

Is it possible to take refund of such accumulated Cenvat Credit? Please also guide for the procedure to be followed ?

Rajesh Kumar

Rajesh Kumar (Expert)

11 May 2009 No, it is not possible to take refund of credit accumulated due to deemed export.
Supply to EOU on payment of duty. The buyer EoU can use the credit in DTA clearance of goods.

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ADITYA

ADITYA (Querist)

12 May 2009 Dear Mr Rajesh,

1 To fulfill EPCG Export bligation, is sales to EOU with Excise Duty is covered ?

2 Is there any problem to get refund of such Excise Duty ie Terminal Excise Duty from DGFT, in respect of EPCG Licence Obligation ?

Thanks

Suren

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

19 May 2009 As of now it is credit cannot be refunded. Better to charge the same and EOU goes for refund.
Representation to the new GOIvt may also be made.

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